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My Plan to Save Up to Buy a House

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By Jenna Brown

One of the worst parts about being in debt is the feeling I get that I’ll never have a place of my own. Home ownership is a big decision. I know that. In fact, it’s been a decision that I’ve steered clear of for most of my adult life. As a renter, a big chunk of my utilities are included in my rent. As a renter, when something breaks I just call my landlord and viola! It gets fixed. As a renter, I can pick up and move to wherever I want (with thirty days notice, of course). I’m not tied to any one place and I don’t have to worry that my living space will be threatened if the economy tanks again.

Still, home ownership is a boon in so many ways. It adds a level of stability to my life that has been missing. It would be nice to know that, zoning laws notwithstanding, if I want to change something in my home I can: I can paint. I can knock out or build in walls. I can add space. I can make it absolutely my own instead of having to find creative ways to dress up a rental space. Plus, owning a home makes me look better and more reliable on paper. Finally, being a homeowner would qualify me for a bunch of tax breaks that are mere pipe dreams as a renter.

Of course, buying a home isn’t easy. Houses are incredibly expensive (unless I want to buy in Detroit and, no offense to the Motor City, that’s not in the cards right now). Buying a home means saving enough to be able to fork over at least 20% of a seller’s asking price up front. That is a lot of money to save, especially since I’m still paying down my debt and building up my emergency funds, retirement accounts and savings accounts. Then, there’s finding a mortgage lender who will actually approve my application. It’s a lot, to say the least.

Still, I have a plan. It might be a “Pie in the Sky” type of plan, but it’s better than nothing. Here it is:

Figuring Out the Timeline: There is no way I am going to be able to save up 20%, pay down enough debt to make me stop looking risky to mortgage lenders and be ready to move any time soon. So, instead, I’ve decided that I don’t even want to start looking for homes or mortgages until 2022 or 2023.

Why So Far Out? I have debts and several accounts I’m trying to build. My long term goals will not allow me to totally eschew those accounts and debts in favor of saving for a home. Giving myself seven to eight years to save lets me accomplish all of those goals simultaneously. Plus, it takes an average of seven years for bad marks on a credit history to fall off. Most of mine have an average of three years left on them before they disappear. If I keep paying down my debt and don’t rack up any new bad marks, I’ll have four years of totally positive credit history to build on as well as three years of diligent and positive payment histories working to my benefit. Mortgage lenders will be able to see that I work on my debts before taking on new ones and that I know how to manage my credit and payment plans.

Finding Breaks & Deals: Did you know that there are tons of different programs out there that make it easier for first time home buyers to purchase their first homes? It’s one of the areas I have been researching. At office of Housing and Urban Development, for example, has programs that help reduce the closing costs and down payment amounts through grants or very low cost loans. If you have served in the military, Low VA Rates says your veteran’s benefits entitle you to lower mortgage rates than civilians will get. I didn’t serve and I’m not sure my income will qualify me for a HUD loan but there are other programs through banks, credit unions and nonprofits that can help a single lady like me make sense of the system and reduce my costs. I plan on exploring all of them and taking advantage of every break I can get.

Figuring Out My Priorities: I know that I do not want to leave my current city. I’m totally fine with the idea of putting down roots here and really committing to this place. I’m not sure, though, which neighborhood I most want to live in long term. I love where I live now, but buying space here is expensive and primarily condominium-based. I’m not sure I always want to share walls with other people. Another factor is future kids. I know that if I have kids I want them to go to a great school and that means committing to a neighborhood in those school districts. I also want to be able to have enough space to accommodate guests.

You’ll notice that I didn’t really break these categories down into specific numbers. This is because it is important for me to be flexible when I’m putting together a long term plan. I know what I can afford now, but who knows what the market will be like when I’m ready to buy. So, instead, I’m hoping that by keeping it loose and focusing on my current goals and doing my ground work now, when I’m ready to buy, the process won’t be as shocking as it has been for my friends and family. Wish me luck!


How I am Blogging Away My Debt: An Overview

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I really love the concept of “blogging away debt” (which is the obvious appeal of this site) because after I got out of High School, I went to community college, but it couldn’t keep my attention. As you’d expect, that quickly amounted to me taking on student loan debt so, naturally, I went out looking for jobs. I settled into a good position for a small company doing their website stuff which lead me to begin learning about the whole blogging thing. Before long I found myself spending my free time in the afternoon constantly blogging, commenting, connecting, and finding ways to earn a few bucks. I have a long way to go before all of my debt is eliminated, but ever since I started my blogs, I have been able to scale it from nothing to a couple hundred extra bucks each month (which can do some very amazing things to knocking down debt, believe me). Here’s how I’m doing it…

Keeping a solid mindset

The thing that I needed most when I set out to use my blog to cut away at my debt was inspiration and motivation. I needed these two because I had already been busting my butt at work all day, and now I had to come back and put in another 4 – 6 hours into the blog. What I started to do was look for a mentor. There were a few different people in business that really caught my attention. One of them was Patrick Byrne; who’s the CEO of Overstock.com. It wasn’t just about having that high position, but the lifestyle that came about with the success. So what I did was make a mental image. The person who I wanted to be. By doing so, I was able to sit down and write out clear goals. Once I had those goals, I was able to break it all down into manageable tasks for the day-to-day activities.

I found that having these clear goals and activities made it far simpler to do my work, and keep my eye on the debt reduction prize. Before long those extra hours I was putting in doing blogging after work didn’t feel like a drudge. It became exhilarating because it was forming a new lifestyle.

Promoting products I love

I started my blog(s) focused around the hobbies I enjoy (like music, crafts, etc), and so the first few months was me writing as much as I could doing tutorials, reviews, and the like. Later down the line I began looking to affiliate marketing which sounds off-putting because of the whole “marketing” aspect of it, but it really made sense if I wanted to earn a bit from my blogs. The post that really got me excited was labeled “11 Lessons I Learned Earning $119,725.45 from Amazon Associates Program“. It taught me how to get into the affiliate program done by Amazon which was a no brainer because I was already talking about products on my sites…but I was never linking them as an affiliate (where you get to earn a commission).

Basically it’s this

1. Find a product you’re promoting (in this case it was an item I was using with my hobby)

2. Talk about it on your blog

3. Link to it with your affiliate URL

But that wasn’t the end. Sites like Etsy, Ebay, and other major retail websites have these affiliate programs. So when I was doing my reviews I’d plunk in a link and viola! I began earning some money from what I had already been doing.

Working off what works

Once you start to learn all the various skills that goes into blogging you will be astounded to find how many of them can be nice little money makers of their own. For example:

• You could setup websites for people or businesses
• You could create graphics or edit video for clients
• You could publish a book or develop a piece of software

Creating content isn’t the only form of income generation with blogging. If you take the time to browse around freelance marketplaces (here’s a good list to start with) you can figure out what other people are doing, and then use your skills (and blog – like a resume) to get your foot in the door. What I did was help friends, family, and aquaintences setup websites for their businesses (or just as a personal site). Since they signed up for the domain and hosting under my name I earned a commission. It’s win/win/win since they get a site, I got to help them, and I earned a bit of extra money with my skills.

That’s my story…what’s yours?